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Best Budget-Friendly New Cars Under $25,000

These reasonably-priced cars perform well in Consumer Reports' tests and are safe, fuel-efficient, and reliable

light blue Kia K4 on elevated road with city skyscrapers in background
2026 Kia K4
Photo: Kia

Although the average new-vehicle transaction price topped $49,000 in February 2026, according to Kelley Blue Book, many automakers still offer well-equipped, affordable sedans and hatchbacks for $25,000 or less. To find a safe and reliable model at this price, buyers should look past the sticker price and examine the ratings from Consumer Reports’ independent tests and owner surveys.

Our experts’ analysis identifies the best compact cars and hatchbacks under $25,000, based on Consumer Reports’ real-world road tests and member surveys. Every model on this list is recommended and well-equipped at this price.

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Most of these come with standard automatic emergency braking (AEB) with pedestrian detection and AEB that operates at highway speeds. Blind spot warning (BSW) and rear cross traffic warning (RCTW) are either standard or optional without pushing the price above $25,000 before destination charge, taxes, and fees. A few models that were bumped out of the price category by the added cost of those safety features will be on our Best New Cars and SUVs for Under $30,000 list.

Be aware that Overall Scores change over time as new information, such as reliability data, becomes available. The model pages always reflect our latest ratings.

This article and the list below are already available to Consumer Reports members. If you haven’t signed up, click below and become a member to access the list and all our exclusive ratings and reviews for each vehicle we buy and test. Joining also gives you full access to exclusive ratings for the other products our experts evaluate in several categories, including electronics and appliances.

Used-car shoppers can click through to the model pages for information on older versions of these vehicles. Consumer Reports members can also search our Used Car Marketplace for vehicles for sale in their area, sorting by the factors that matter the most. The listings include Consumer Reports reliability and owner satisfaction ratings, and most vehicles include a free Carfax report.

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We investigate, research, and test so you can choose with confidence.


Jon Linkov

Jon Linkov is the deputy auto editor at Consumer Reports. He has been with CR since 2002, covering varied automotive topics including buying and leasing, maintenance and repair, ownership, reliability, used cars, and electric vehicles. He manages CR’s lineup of special interest publications, hosts CR’s “Talking Cars” podcast, and writes and edits content for CR’s online and print products. An avid cyclist, Jon also enjoys driving his ’80s-era sports car and instructing at track days.